When your child gets old enough to start college, expenses can add up quickly. Depending on your income levels, however, you may be able to get tax credits or tax deductions to cover some of those costs, even if your child is attending a private school.
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Higher Education Schools
The federal government offers multiple tax credits and tax credits for families with children in higher education schools such as a state college, private university or local vocational schools. As long as the school is an approved postsecondary educational institution, you may be able to qualify for the education-related tax credits or deductions.
Some educational tax credits are available to individuals or families who have a qualifying child enrolled in approved postsecondary schools. A qualifying child is generally a dependent who is under 24 years of age for whom you provide at least 50 per cent support.
Credits and Deductions
Different tax credits and deductions exist to help pay for the cost of private school tuition. The American opportunity tax credit can be taken for four years and allows you to reduce your taxes by up to £1,625 per eligible child. The lifetime learning credit can provide up to £1,300 toward reducing your taxes with no limit on how many years it can be used. Both credits cannot be taken at the same time however. Alternatively, the tuition and fees deduction lets you reduce your taxable income by up to £2,600.
Each education-related tax credit or deduction is subject to income limitations, regardless of whether your child attends a public or private school. Generally you are allowed to take the credits or deductions if your adjusted gross income is below £52,000, or £104,000 when married filing jointly. Some benefits are not available if your income is above £58,500 or £117,000 for married filing jointly.
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